Difelice v Dettmer

Case [2021] FCA 631


FEDERAL COURT OF AUSTRALIA

Difelice v Dettmer [2021] FCA 631  

File number: VID 268 of 2021
Judgment of: SNADEN J
Date of judgment: 10 June 2021
Catchwords:

INDUSTRIAL LAW – applicant holds office as assistant state secretary of a well-known trade union – misconduct charges brought against applicant seeking his removal from office – charges proposed to be determined by the union’s National Council – procedures set in train by resolutions made on 6 May 2021 – whether National Council resolutions are beyond the power conferred on that body by the union’s rules – whether the National Council meeting at which procedures were decided was validly convened – whether National Council has power to determine whether a “State Official” should be removed from office

PRACTICE AND PROCEDURE – application for interlocutory relief under s 164(4) of the Fair Work (Registered Organisations) Act 2009 (Cth) – appropriateness of directions for the observance of union rules – application for interlocutory relief granted

Legislation: Fair Work (Registered Organisations) Act 2009 (Cth) – ss 164 and 329
Cases cited: Briant v Martin [2020] FCA 1009
Division: Fair Work Division
Registry: Victoria
National Practice Area: Employment and Industrial Relations
Number of paragraphs: 44
Date of hearing: 9 June 2021
Counsel for the Applicant: Mr M Harding SC with Mr T Borgeest
Solicitor for the Applicant: Gordon Legal
Counsel for the First, Second, Third, Sixth, Seventh, Eighth, Nineth, Tenth, Eleventh, Twelfth, Thirteenth, Sixteenth, Seventeenth, Eighteenth, Twenty-first, Twenty-second, Twenty-fourth, Twenty-fifth, Twenty-sixth, Twenty-eighth, Thirtieth, Thirty-second, Thirty-fifth, Thirty-sixth, Thirty-seventh, Thirty-eighth, Fortieth, Forty-first, Forty-second and Forty-third Respondents: Mr S Crawshaw SC
Solicitor for the First, Second, Third, Sixth, Seventh, Eighth, Nineth, Tenth, Eleventh, Twelfth, Thirteenth, Sixteenth, Seventeenth, Eighteenth, Twenty-first, Twenty-second, Twenty-fourth, Twenty-fifth, Twenty-sixth, Twenty-eighth, Thirtieth, Thirty-second, Thirty-fifth, Thirty-sixth, Thirty-seventh, Thirty-eighth, Fortieth, Forty-first, Forty-second and Forty-third Respondents: Taylor & Scott Lawyers
Counsel for the Fourth, Fifth, Fourteenth, Fifteenth, Nineteenth, Twentieth, Twenty-third, Twenty-seventh, Twenty-nineth, Thirty-first, Thirty-third, Thirty-fourth and Thirty-nineth Respondents: Did not appear
Solicitor for the Intervener: Mr D Taylor of Segelov Taylor Lawyers

ORDERS

VID 268 of 2021
BETWEEN:

PAUL DIFELICE

Applicant

AND:

ANDREW DETTMER

First Respondent

ANN-MARIE ALLAN

Second Respondent

PETER BAUER (and others named in the Schedule)

Third Respondent

PAUL BASTIAN

Intervener

ORDER MADE BY:

SNADEN J

DATE OF ORDER:

10 JUNE 2021

THE COURT ORDERS THAT:

1.For the purposes of these orders:

(a)the “6 May Resolutions” means the resolutions purportedly carried and adopted by the respondents on 6 May 2021 during their purported meeting as the National Council of the Union;

(b)the “Defelice Affidavit” means the affidavit affirmed herein by the applicant on 18 May 2021;

(c)“FCRs” means the Federal Court Rules 2011 (Cth);

(d)“Resolution 3” means the resolution that forms part of the 6 May Resolutions and that is headed “resolution 3”; and

(e)“Union” means the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union.

2.Pursuant to r 9.12 of the FCRs, Mr Paul Bastian have leave to intervene in the proceeding.

3.Pursuant to r 10.24 of…

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Difelice v Dettmer [2021] FCA 631
Case
[2021] FCA 631
Decision Date

CaseChat Overview and Summary

In the case of Difelice v Dettmer, the applicant, an assistant state secretary of a trade union, sought interlocutory relief from the Federal Court against misconduct charges brought against him by the union’s National Council. The applicant argued that the National Council resolutions determining the charges were invalid due to procedural irregularities and that the Council lacked the authority to determine such charges. The court was required to decide whether the National Council resolutions were valid and whether the Council had the power to determine if the applicant should be removed from his office.

The court examined the applicant's contentions that the National Council meeting was improperly convened, that the resolutions were influenced by an interested party, and that the National Council lacked the power to determine the charges. The court found that Mr Dettmer's involvement in convening the meeting did not offend any relevant principle of natural justice, as he merely exercised an administrative power to call a meeting. The court also held that the National Council had the authority to determine the charges under the union’s rules. However, the court found merit in the applicant's argument that the resolutions were invalid due to procedural irregularities, granting the relief sought by the applicant.

The court granted interlocutory relief in favour of the applicant, enjoining the respondents from giving effect to the National Council resolutions and from hearing and determining the charges against the applicant. The court also abridged the time for service of the originating application and the applicant’s affidavit upon certain respondents. The matter was adjourned for a case management hearing, and the parties were granted liberty to apply.

Orders

Orders of the court

1. For the purposes of these orders:

(a) the “6 May Resolutions” means the resolutions purportedly carried and adopted by the respondents on 6 May 2021 during their purported meeting as the National Council of the Union;

(b) the “Defelice Affidavit” means the affidavit affirmed herein by the applicant on 18 May 2021;

(c) “FCRs” means the Federal Court Rules 2011 (Cth);

(d) “Resolution 3” means the resolution that forms part of the 6 May Resolutions and that is headed “resolution 3”; and

(e) “Union” means the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union.

2. Pursuant to r 9.12 of the FCRs, Mr Paul Bastian have leave to intervene in the proceeding.

3. Pursuant to r 10.24 of the FCRs, service of:

(a) the originating application; and

(b) the Difelice Affidavit,

upon the fourth, fifth, fourteenth, fifteenth, nineteenth, twentieth, twenty-third, twenty-ninth, thirty-first, thirty-third, thirty-fourth and thirty-ninth respondents be taken to have been effected by their being emailed a copy of those documents.

4. Pursuant to rule 1.39 of the FCRs, the time for service upon the respondents of the originating application and the Difelice Affidavit be abridged to the extent necessary to permit the hearing of the applicant's claim for interlocutory relief on Wednesday, 9 June 2021.

5. Until the hearing and determination of this application or further order, the respondents cease, desist from and refrain from giving effect, or further effect, to the 6 May Resolutions.

6. Until the hearing and determination of this application or further order, the respondents cease, desist from and refrain from hearing and determining, themselves and in the exercise of their office as members of National Council of the Union, any of the charges brought against the applicant by Paul Bastian and Steven Murphy dated, respectively, 13 April 2021 and 14 April 2021.

7. Until the hearing and determination of this application or further order, the respondents cease, desist from and refrain from requiring performance of the procedural steps that are the subject of Resolution 3 in respect of the charges brought against the applicant by Paul Bastian and Steven Murphy dated, respectively, 13 April 2021 and 14 April 2021.

8. The matter otherwise be adjourned to a case management hearing on a date to be fixed.

9. The parties have liberty to apply.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

Those observations apply with equal force to the present matter.BACKGROUND The summary by which these reasons commence details the relevant background facts and there is no material dispute about any of them. The only additional matters that should be noted are as follows, namely:(1)the National Council meeting that took place on 6 May 2021 was convened jointly by Mr Dettmer and Mr Murphy (who respectively hold the offices of National President and National Secretary);(2)at that meeting, Mr Dettmer proposed that the charges that had been laid against the applicant should be heard and determined by the National Council;(3)the resolutions that were passed at that meeting concerning the charges brought against the applicant (hereafter, the “6 May Resolutions”) were consistent with that proposal; and(4)Mr Murphy abstained from voting on those resolutions but Mr Dettmer did not.THE CASE FOR INTERLOCUTORY RELIEF The applicant submits that the 6 May Resolutions are invalid and ought not to be acted upon or enforced against him. More precisely, he submits that there is a prima facie case that that is so. His contention is put in three ways. First, he submits that the meeting of the National Council at which those resolutions were passed was improperly called, such that the business that it transacted was not business that the AMWU Rules authorised. Second, he submits that the 6 May Resolutions were improperly influenced by Mr Dettmer, who has an interest in the charges that were their subject (having been one of the recipients to whom the messages that are the focus of those charges were allegedly sent). Third, he submits that they purport to vest in the National Council powers that the AMWU Rules reserve for another body. I shall address each of those contentions in turn.The calling of the 6 May 2021 meeting The applicant submits that the 6 May 2021 meeting of the National Council was improperly convened because Messrs Dettmer and Murphy, who convened it, had an interest in the business that was proposed to be considered at it and, therefore, ought not to have played any part in convening it. The applicant complains that Mr Murphy—as the part-instigator of the charges that have been laid against the applicant—ought not to have played any part in determining whether or not the National Council should meet in connection with those charges. That, he says, is a consequence of his entitlement to have the charges with which he is faced determined consistently with the principles of natural justice. Those principles, he submits, preclude those who have an interest in the prosecution of those charges from taking any part in the process by which they are to be determined. I do not accept that there is anything more than a very weak prima facie case that Mr Dettmer’s involvement in the calling of the 6 May 2021 National Council meeting offended against any relevant principle of natural justice. Mr Dettmer does not press any charge against the applicant. Even if he did, I am not persuaded that that should preclude him from overseeing otherwise unremarkable administrative processes entrusted to him under the AMWU Rules. What Mr Dettmer did is to be recalled: he resolved to bring the subject of the charges before the National Council for consideration as to what might be done with them (as the AMWU Rules plainly require). Even assuming that he has an interest in the determination of the charges brought against the applicant, Mr Dettmer hasn’t done anything that could reasonably be said to have been done (or might reasonably be confused as having been done) in the service of that interest. All he did (so far as the present analysis is concerned) was exercise an administrative power conferred upon him by the AMWU Rules to call a meeting.

Evidence

Evidence Before The Court

For the reasons that follow, I am satisfied that it is appropriate to (and, therefore, will) grant relief substantially in the form that the applicant seeks.EVIDENCE The application for interlocutory relief came before the court on Wednesday, 9 June 2021. The applicant read two affidavits: one that he affirmed on Tuesday, 18 May 2021; and another of his solicitor, Bradley Colin Annson, affirmed on Monday, 7 June 2021. The latter concerned (amongst other things) the service of documents. 30 of the 43 respondents appeared by counsel at the 9 June 2021 hearing. The fourth, fifth, fourteenth, fifteenth, nineteenth, twentieth, twenty-third, twenty-ninth, thirty-first, thirty-third, thirty-fourth and thirty-ninth respondents did not appear. Mr Murphy (the twenty-seventh respondent) also did not appear, having earlier given notice to the court of his intention not to. The court was told that the respondents who did not appear (other than Mr Murphy) were (or mostly were) members of the National Council who hail from Victoria. That may or may not explain why they have not taken steps to defend the action brought by their colleague. Nothing turns on that. Those of the respondents who appeared by counsel read an affidavit affirmed by their solicitor, Mr Timothy John McCauley, on Tuesday, 8 June 2021. The parties that appeared filed helpful written submissions prior to the hearing, for which I record the court’s gratitude. At the interlocutory hearing, Mr Bastian applied for leave to intervene in the proceeding. Over the concise objection of the applicant (and for reasons that needn’t be repeated here), that leave was granted.PRINCIPLES TO BE APPLIED The applicant’s claim for interlocutory injunctive relief is premised upon s 164 of the FW(RO) Act, which provides as follows (by means of subsections that, for reasons neither apparent nor material, are not entirely consecutive):164 Directions for performance of rulesApplication for order directing performance of rules(1)A member of an organisation may apply to the Federal Court for an order under this section in relation to the organisation.Note: For the meaning of order under this section, see subsection (9).(2)Before making an order under this section, the Court must give any person against whom the order is sought an opportunity of being heard.(3)The Court may refuse to deal with an application for an order under this section unless it is satisfied that the applicant has taken all reasonable steps to try to have the matter that is the subject of the application resolved within the organisation.Court may make interim orders(4)At any time after the making of an application for an order under this section, the Court may make any interim orders that it considers appropriate and, in particular, orders intended to further the resolution within the organisation concerned of the matter that is the subject of the application.(5)An order under subsection (4) continues in force, unless expressed to operate for a shorter period or sooner discharged, until the completion of the proceeding concerned.Definition(9) In this section:order under this section means an order giving directions for the performance or observance of any of the rules of an organisation by any person who is under an obligation to perform or observe those rules.

Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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